It’s been over two weeks since our HFN Training Workshop- Bridging the Divide between Finance and Healthcare and we are still receiving positive feedback on the impacts from our participants.

Dr. Saliu a medical doctor and workshop participant who said the “conference was a big eye opener on the rudiments of financial management, the lingua of the financial world, the need to be knowledgeable on the business angle of healthcare provision and the development of profitable healthcare business models” to Dr. Mathew Kolade Amusan, who took the time and effort to send us an email which read “I would like to use this medium to appreciate the HFN team for organising such a fantastic conference on healthcare financing at the Medic West Africa conference, it was life transforming” By all accounts the workshop which had 5 separate sessions on healthcare financing topics and over 200 participants in attendance was a resounding success. But if you missed it here are a few highlights from the conference

Healthcare Federation of Nigeria held a networking dinner in collaboration with PharmAccess Foundation and International Financing Corporation. The event which had various dignitaries in the health sector in attendance was held on the 11th November 2015 at Four Points By Sheraton Hotel, Oniru Estate, Victoria Island, Lagos.

The event was held to host the visiting leadership of the Health- In-Africa team of the International Finance Corporation as well as a good forum for the leadership of the Health-in-Africa IFC team, Healthcare entrepreneurs and practitioners to build formidable partnerships for Healthcare Development.

Dr. Leke Pitan, former Commissioner for Health in Lagos State between 1999 and 2006, is a seasoned public health practitioner and a consummate administrator known for pioneering key public-private initiatives in the state health sector while on the saddle. He is a member of the Forum on Evidence-Based Health Policy-Making of the Nigerian Academy o f Science. He is Chairman of the Project Advisory Committee of the Ford Foundation’s Health Journalists’ Immersion Programme on Maternal, Child and Newborn Health. He is also the Executive Director of Pitman UK Training Centre in Nigeria. Dr. Pitan has garnered many awards and recognition for his countless contributions to the development of the health sector of the nation. He brings his wealth of experience to enrich the discussion about how equipment leasing can be harnessed as a means of healthcare financing.

There are multiple challenges currently facing the healthcare industry in Nigeria. Some of these include access to quality and affordable health care as well as access to finance. Access to finance has been a constant challenge with increased budgetary constraints on the government side in light of decreasing crude oil prices, which is the mainstay of Nigeria’s rent-oriented economy.

In addition to the foregoing, healthcare costs have been on the rise in recent times. The introduction of technology into healthcare provision has shortened the lifespan of medical equipment or technology so that a new technology replaces the forerunner in a matter of few years. This is also the case for other equipment and tools needed to provide healthcare. Dramatically, all these are within the context of a global economy just recovering from the Global Recession of 2008-2011 with the effects still noticeable.

As a result of the foregoing, new and innovative methods of financing beyond the traditional approaches have to be explored.

One of these innovative ways is medical equipment leasing.

Equipment leasing is the process of securing the use of machinery and equipment related to one’s business by way of a rental agreement. Many industries make use of equipment leasing. This might be an ideal situation for a new business or an established business with little working capital so that the financial resources that otherwise would have purchased the equipment, can be tailored to more pressing needs.

Globally, Equipment Leasing is now recognised and established as a creative financing alternative, used to meet the world’s equipment needs. As at 2014, the global leasing industry accounted for an annual turnover of about $750 billion while in the US, leasing remains the single most widely-used method of external finance, representing 30% of investment in capital equipment.

The Health Innovation Challenge's key theme this year was to create an active Nigerian health innovation market place, aimed at improving healthcare delivery through innovation, at the end of the challenge they had narrowed down to about 15 innovative ideas. According to the Commonwealth Health statistics, health is an issue in Nigeria to the point where in the country’s public spending on health was two per cent of gross domestic product (GDP) in 2011, equivalent to 80 dollars per capita. “I think healthcare is largely ignored in Nigeria, you find that even for the most basic things people have to travel,” said Herbert Wigwe, Managing Director of Access Bank and Chairman of the Nigeria Health Innovation Market Place. He explains how the situation is so dire that Malaria for example is a greater killer than HIV/AIDS in the West African country, “It basically takes out about 300 thousand lives in this country, perhaps even a lot more”.

Nigeria seeks to innovate health sector. At the recently concluded 2015 Health Innovation Challenge in Lagos, the key theme was creating an active Nigerian health innovation market place, aimed at improving health care delivery through Innovation. The idea that Nigerians are now using medical tourism as a way to access healthcare concerns Wigwe and is something he finds as “embarrassing”, Hence the decision to create a private sector led initiative. “Where we start looking for innovative ways to help resolve some of the health challenges we face in our country, so that we can resolve them internally without spending a lot more money on international travels, international medical facilities, and developing these economies,” said Wigwe.